You will no doubt be aware that emergency legislation in the form of the Coronavirus Bill has been enacted. The new legislation extends the notice that a Landlord must give to a Tenant to 3 months. This is, clearly, in order to protect Tenants who may be unable to make rent payments or find alternative housing during the Coronavirus pandemic.
The issues are somewhat confused by the fact that it would appear that if a Notice has already been served upon a Tenant at the time of the legislation being enacted, and that Notice period has expired, the Landlord can potentially still rely upon that Notice and issue Possession Proceedings. However, significant delays in the Courts processing such claims are likely with some Courts even stopping listing cases. If Notice has been served and has expired, the likelihood is that even if you issue Court proceedings for Possession you will face significant problems in having the proceedings issued for a Hearing, attending the Hearing and, following that, securing the services of a Bailiff to carry out the enforcement of any Order for Possession.
Having said that, every Court and every case is different and just because the emergency legislation is in place does not mean that steps cannot be taken to secure your possession of the property once the pandemic period is over.
It may be the case that you have previously had the benefit of a reliable Tenant who has paid their rent in a timely manner throughout the Tenancy. However, with the change in circumstances of late it may be that they will struggle to make their normal monthly rent payments. For those who cannot make those payments, it may be worth considering negotiating a reduced rent or a rent-free period with the Tenants on the basis that arrears will need to be repaid in due course (unless you agree otherwise). At that stage, it may be worth setting up a payment plan now for when the Tenant is back on their feet. It is, as always, imperative that full records are kept by you in relation to any such reduced rent or rent-free period.
Many Landlords are of course continuing to make mortgage payments on the rented property via a Buy to Let mortgage. If it is the case that your Tenant is unable to make rent payments which therefore puts you in a financial bind in relation to making the mortgage payments, it is certainly worth contacting your lender to make enquiries in relation to receiving a mortgage holiday from them. Of course, any amount not paid now will need to be repaid through either higher future payments or an extended term on the mortgage. The good news, however, is that securing a payment holiday on your mortgage should not have any negative impact on your credit rating.
These are certainly uncertain times and it is of course difficult, in a general article about such matters, to give accurate and specific advice as to your own personal situation. Should you wish to make enquiries in relation to your specific circumstances and receive tailored advice in respect of the same, please do not hesitate to contact our Janine Griffiths at [email protected]